Dubai’s agenda to be capital of Islamic economy gains pace
dubai — Dubai Islamic Economy Development Centre, which has been set up with the agenda of reinforcing Dubai as the capital of the $2 trillion world Islamic economy, said on Wednesday that it had achieved record progress across 75 per cent of initiatives in the first half of 2017.
Unveiling the DIEDC’s updated strategy for 2017-2021, Sultan bin Saeed Al Mansouri, Minister of Economy and chairman of the centre, said remarkable progress has been achieved in three strategic sectors of Islamic economy — Islamic finance, halal trade and industry and Islamic lifestyle.
The DIEDC’s updated strategy seeks to consolidate Dubai’s status as the global capital of Islamic economy through boosting the sector’s contribution to the gross domestic product, increasing the share of halal products in the country’s trade and collaborating with international markets to grow the Islamic economy system worldwide, the minister said.
Chairing the DIEDC’s board meeting at its headquarters at the Dubai World Trade Centre, Al Mansouri said the ‘Dubai: Capital of Islamic Economy’ strategy had gained momentum from the initiatives adopted by Dubai and the UAE in many vital sectors, including industry, energy, sustainable development and science. “I have the utmost appreciation for the efforts of the DIEDC’s partners for their efforts in executing the milestones of the initiatives within set deadlines.”
It was in in October 2013 that His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, committed Dubai to a three-year timetable of making it the capital of the global Islamic economy, one of the fastest growing segments of the world economy. The global Islamic economic spend by an estimated 1.6 billion Muslims in the world is estimated at $1.9 trillion across sectors such as food, travel, fashion, pharmaceuticals, retail and leisure. The value of assets in Islamic financial institutions is calculated at about $2 trillion.
The future of the Islamic economy is promising as the halal food value, accounting for nearly 12 per cent of the world’s food market, is projected to reach $2.5 trillion in 2020.
“I commend our partners on their contributions that helped us make significant headway across more than 75 per cent of our initiatives within such a short time span. I am also delighted at the progress we have collectively achieved in promoting the culture of Islamic economy with the aim of attracting consumers and investors to its sectors,” said Al Mansouri.
He noted that Dubai and the UAE are instrumental in raising awareness about the culture of Islamic economy worldwide and boosting global interest in adopting its principles. “Today, non-Muslim countries view Islamic finance, halal lifestyle and Shariah-compliant trade and industry as the pillars of their sustainable development plans. The Islamic economy strategy adopted by Dubai and the wider UAE is unique in its ability to foresee economic changes, offer secure investment options and utilise bonds to finance major projects across the globe.”
Abdulla Mohammed Al Awar, CEO of DIEDC, presented a review of the milestones achieved during the past six months and the efforts made to overcome challenges.
The board members discussed new initiatives such as exploring the possibility of establishing a national re-takaful company, as well as setting up a central Shariah advisory entity to streamline the provision of Shariaah review services to Islamic financial institutions in the UAE.
DIEDC board members also examined ways of leveraging the strong presence of local companies and institutions at global events to advance international synergies in Islamic economy sectors and boost the country’s global competitiveness in foreign investments, infrastructure and legislative systems.
The board agreed on the urgent need to increase spending on research in the field of Islamic sciences and culture in a bid to support the country’s plans to develop a post-oil economy based on knowledge, innovation and science. The board also highlighted the vital role of digital Islamic economy in boosting entrepreneurship through the opportunities it provides to SMEs in e-commerce and digital product innovation that cater to Muslim and non-Muslim consumers worldwide.
The board also reviewed efforts to collaborate with academic institutions in providing educational programmes focused on Islamic economy.
The board members stressed the importance of jurisprudence and legislation in developing Islamic finance and investment mechanisms that align with local and international ambitions to achieve sustainable financial stability and balanced wealth distribution. They also agreed on continuing efforts to achieve an international consensus on halal industry standards to help the sector reach its full potential and meet the global health and safety requirements.
— issacjohn@khaleejtimes.com